What is AEON Credit Service (M) Bhd Financial Strength?
AEON Credit Service (M) Bhd has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
AEON Credit Service (M) Bhd displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
AEON Credit Service (M) Bhd's Interest Coverage for the quarter that ended in Feb. 2024 was 696.93.
AEON Credit Service (M) Bhd's debt to revenue ratio for the quarter that ended in Feb. 2024 was 4.71.
As of today, AEON Credit Service (M) Bhd's Altman Z-Score is 0.82.
Competitive Comparison of AEON Credit Service (M) Bhd's Financial Strength
For the Credit Services subindustry, AEON Credit Service (M) Bhd's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
AEON Credit Service (M) Bhd's Financial Strength Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, AEON Credit Service (M) Bhd's Financial Strength distribution charts can be found below:
* The bar in red indicates where AEON Credit Service (M) Bhd's Financial Strength falls into.
AEON Credit Service (M) Bhd Financial Strength Calculation
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors
A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
AEON Credit Service (M) Bhd has a Z-score of 0.82, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.82 is in distress zone. This implies bankruptcy possibility in the next two years.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
AEON Credit Service (M) Bhd (XKLS:5139) Financial Strength Explanation
The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.
AEON Credit Service (M) Bhd has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
AEON Credit Service (M) Bhd Financial Strength Related Terms
Thank you for viewing the detailed overview of AEON Credit Service (M) Bhd's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
AEON Credit Service (M) Bhd (XKLS:5139) Business Description
AEON Credit Service (M) Bhd offers credit cards and other loans and financing options to consumers in Malaysia. The company earns more than 80% of its revenue from interest and financing charges on the loans it provides. Fees provide the remaining revenue. Vehicle financing, with a roughly even split between cars and motorcycles, accounts for more than half of the loans the company has outstanding. Remaining loans outstanding are in the personal financing, consumer durables financing, and credit card categories. Aeon Credit issues credit cards under the Visa and Mastercard brand names.
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